FAR - IASB - Conceptual Framework of Financial Reporting by Business Enterprises - IASB Framework Flashcards
True or False: Income may be realized or unrealized.
True.
What elements of the FASB framework are not included in the IASB framework?
Investments by owners, distributions to owners, comprehensive income, gains, losses.
What are the underlying assumptions of the IASB framework?
The financial statements are prepared on the accrual basis and the entity is a going concern.
When do you recognize an element in the IASB framework?
When it is probable that there is a future economic benefit and the item has a cost or value that can be measured with reliability.
What elements are considered income under the FASB framwork?
“Revenue” and gains” as separate elements.
What are the five elements in the IASB framework?
Assets; liabilities; equity; income; expenses
What is meant by a “reliable measurement”?
Measurement in which a reasonable estimate is made.
True or False: The IASB framework should only apply to public companies, not private companies.
False: The IASB framework should apply to both public and private companies.
What are some of the purposes of the IASB framework?
Assist the Board to develop new International Accounting Standards (IASs); promote harmonization of standards; and assist, provide information to interested parties.
What will be the underlying conceptual support for future principles-based accounting standards?
Developing a common framework.
Does the IASB framework include losses for the term “expense”?
Yes, it includes such losses.
What comprises income under the IASB framework?
Includes both revenues and gains.
